G'day Desktop. It appears that everyone is assuming that example 1 is in fact CTO, but there are probably 5 or 6 other groups of shareholders out there in gold share desperation land who think that he is talking about their company and not CTO.
Point 1. "Minimizing dilution". Can we say this is a good point that has been practised by CTO?. I think not. They have as many raisings as we have all had sleepless CTO nights. Point 2. "Maintains development to ensure cash flow without debt or hedging". This point seems to me to indicate that he is not talking about CTO as they do not really have any cashflow to speak of unless it has happened since the last quartely. As far as hedging is concerned, imagine if they had hedged their production when they announced that they were going to produce 100,000oz, then they would be out the back door by now because they never produced the 100,000 and would have had to deliver or buy back their position. Point 3. The points Neil makes about "cabal" on sites such as this really get up my nose, if in fact he is talking about CTO, and I have resevations that he is. All I can say to that is, whose bloody fault is that!!!??? Chat sites thrive on a lack of accurate info coming out of the companies being discussed thereon. The shareholders worry about their investment in a company, and because the are not regularly updated with accurate information from the company, they turn to others to try to find out what is happening. They are then subject to all sorts of ideas that may or may not be accurate, but many will turn out to be accurate as so many rumours eventually do happen. I for one am very forgiving, in the right circumstances, and would have been most receptive to a honest and thorough explanation of what happened on several occassions when something was to be delivered but never did happen. I think that most people are the same and if management came out and said we "stuffed up" or "we deceided that we would be better off doing it another way", then I am sure most shareholders would respect their honesty. One of the most important things in the modern world is communication with shareholders, and often you will see less deserving companies that have better shareprices, and have no trouble raising capital when needed simply because they have good relations with their shareholders. CTO should have a monthly newsletter to it's shareholders at least until such time as it is delivering on most of it's previous commitments. Neil sharnock may have a very good understanding of the process of mining gold, but I feel from his article that he probably is from the old school when it comes to shareholder relations, you know, "lay back and think of England". If he is talking about CTO, he is also falling into the old trap with this company of talking about the "massive reserves". When talking mining shares I feel "reserves" should only be used to refer to proven reserves and CTO does not have massive numbers of these.
Regards
Lockitt
CTO Price at posting:
19.5¢ Sentiment: Sell Disclosure: Not Held
